Contributing Firms:
As the ‘Global Tax Deal’ remains in the crosshairs of the new US Administration, there is much uncertainty around the future direction of the OECD’s BEPS project. However, with the US having been influential in shaping BEPS’ Two-Pillar approach and with valuable tax flows at stake, its opposition to the reforms could yet dissipate, resulting in the possibility of it effectively aligning with the Global tax Deal, without formally rejoining it.
In this roundtable we have a special focus on the future of BEPS as its viability as the new global tax framework is called into question in the wake of the Trump Administration proclaiming its opposition to the ‘Global Tax Deal.’ Our panel examines areas of BEPS that could be revisited and improved and outline the role and importance of the UTPR to the project. The prospect of increased corporate tax competition is also examined while TAC determinations and High Court decisions in the areas including income tax, corporation tax, CGT and group relief feature.
Following early moves by the Trump Administration there is a great deal of uncertainty about the US’ commitment to the OECD’s BEPS project. If the US pulls out of the ‘Global Tax Deal’ do you think, from the basis of assessments made to date, that the BEPS project can remain viable?
Pascal Saint-Amans, the former Director at the OECD Centre for Tax Policy and Administration who during his time at the OECD spearheaded the BEPS negotiations recently commented that ‘if we remove the UTPR we no longer have a global minimum tax’ when discussing the Trump Administration’s opposition to the rule. Can you explain how the UTPR works and how important its role is for the overall BEPS project?
The US Secretary of the Treasury has been ordered to investigate ‘whether any foreign countries are not in compliance with any tax treaty with the United States or have any tax rules in place, or are likely to put tax rules in place, that are extraterritorial or disproportionately affect American companies’ and to provide a report that will include ‘a list of options for protective measures that the United States should adopt or take in response to such non-compliance or tax rules’ by 20th March. Considering the US was heavily involved in shaping the BEPS Two Pillar approach, how significant do you think this report might be in relation to BEPS? In your view, are there any aspects or areas of the BEPS’ Two Pillar approach that could be improved upon if action is taken to reopen discussions?
The High Court recently overturned the TAC decision on the ‘Susquehanna’ case. Please comment on the case and the judgment from the High Court.
Away from the uncertainties of the BEPS project, what is your overall assessment of the implications for Ireland if the new US administration successfully reduces its federal corporation tax rate to 15%?
Can you comment on noteworthy determinations from the Tax Appeals Commission from the final quarter of 2024 and to date in 2025?
In its recently released annual Economic Survey for Ireland, the OECD has called on the Irish Government to broaden both the VAT and personal income tax bases to diversify tax revenues. In your view how could Ireland’s tax base be effectively broadened while maintaining Ireland’s attractiveness for both foreign and domestic investment?
What changes are needed to boost the competitiveness of the Irish tax system?
BDO’s Katie Auld examines the Revenue Commissioners’ engagement with taxpayers around transfer pricing matters and transfer pricing considerations for multi-national companies. She writes that in light of recent tariffs imposed by the US government, the importance of transfer pricing adjustments has been significantly heightened as these may also result in customs implications.